China’s Great Wall Motors To Acquire General Motors’ Talegaon Plant In Maharashtra
Chinese automaker Great Wall Motors Co. Ltd. has inked a pact with General Motors Co. to acquire the latter's manufacturing facility in Talegoan near Pune, Maharashtra.
The transaction, which is subject to regulatory approval, is expected to close in the second half of 2020, Great Wall Motors said in a release on Friday.
The Chinese automaker is set to debut its Haval brand and electric vehicle at the Auto Expo-Motor Show 2020, slated to be held in Greater Noida from Fe. 7-12. "Under a binding term sheet signed on Thursday, the GM India legal entity, which includes the Talegaon facility, will transfer to Great Wall Motors," the release said.
After more than two decades of operations in India, General Motors stopped selling cars in the country in 2017, as part of its global restructuring exercise.
Liu Xiangshang, vice president (global strategy) at Great Wall Motors, said the deal will underpin the company's plan to enter and invest in India. "The Indian market has great potential, rapid economic growth and a good investment environment. Entering the Indian market is an important step for Great Wall Motors' global strategy.”
“Great Wall Motors’ investment will create more jobs, including direct and indirect employment, further enhancing the skill level in the auto industry, promote the development of the local supply chain, R&D and related industries,” he added.
General Motors will provide a separation package and transition support for employees impacted due to the deal, as well as an orderly transition for partners.
"Since focusing the Talegaon plant on manufacturing for export markets in 2017, GM has been exploring strategic options for the better utilisation of the site," Julian Blissett, senior vice president (international operations) at General Motors, said. The Talegaon plant had delivered excellent vehicles for domestic and export markets, he added.
"We will work closely with the state and national governments to secure the required approvals so that Great Wall Motors can elevate production at the plant even further and maintain," he said.
Chevrolet, the brand under which GM sold cars in India, will continue to honour all warranties and provide after-sales support, including ongoing service and parts requirements for existing customers in India, the release said.